MARCH 6, 2019 INVESTOR PRESENTATION C.H. Robinson Worldwide, Inc. All Rights Reserved.

Transcription

1 MARCH 6, 2019 INVESTOR PRESENTATION

2 S A F E H A R B O R S TAT E M E N T Except for the historical information contained herein, the matters set forth in this presentation and the accompanying earnings release are forward-looking statements that represent our expectations, beliefs, intentions or strategies concerning future events. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from our historical experience or our present expectations, including, but not limited to such factors as changes in economic conditions, including uncertain consumer demand; changes in market demand and pressures on the pricing for our services; changes in the availability of equipment and services from third party providers, including the availability of contracted truckload carriers and changes in prices; changes in political and governmental conditions domestically and internationally; catastrophic events such as environmental events or terrorist attacks; failure to retain employees; failure of any of our technology or operating systems, including due to data security breaches or hacking; competition and growth rates within the third party logistics industry; risks associated with our decentralized operations; seasonality in the transportation industry; risks associated with litigation and insurance coverage; risks associated with operations outside of the U.S.; risks associated with the produce industry, including food safety and contamination issues; fuel prices and availability; risk of unexpected or unanticipated events or opportunities that might require additional capital expenditures; our dependence on our largest customers; risks associated with identifying suitable acquisitions and investments and with integrating acquired companies; risks associated with our long-term growth and profitability; and other risks and uncertainties detailed in our Annual and Quarterly Reports.

3 GLOBAL MULTIMODAL, MULTISERVICE PROVIDER 115 year history of accelerating commerce Connecting over 200,000 customers and carriers around the globe North America s largest 3PL Unmatched experience and scale 3

4 FULL SUITE OF LOGISTICS AND TECHNOLOGY SERVICES 53% $1.45B TRUCKLOAD Based on 2018 net revenues 17% $471M LESS THAN TRUCKLOAD (LTL) 12% $313M OCEAN 5% $122M MANAGED SERVICES AND OTHER 5% $121M AIR 4% $111M SOURCING 3% $89M CUSTOMS 1% $32M INTERMODAL W E D E L I V E R A N A V E R A G E O F O V E R 3 S E R V I C E S P E R T O P C U S T O M E R $20B FREIGHT UNDER MANAGEMENT 4

5 WE COMPETE IN A GROWING INDUSTRY U.S. 3 P L B R O K E R A G E M A R K E T F O R E C A S T 10% C A G R G L O B A L O C E A N F R E I G H T M A R K E T F O R E C A S T 4% C A G R (IN BILLIONS) $80 $88 $97 $107 $118 (IN MILLION TEUs) Source: Technavio 2018E 2019E Source: Armstrong & Associates 2020E 2021E 2022E G L O B A L A I R F R E I G H T M A R K E T F O R E C A S T 4% C A G R (IN MILLION TONNES) Source: Technavio

6 FREIGHT BROKERAGE MODEL IS INCREASINGLY RELEVANT U. S. F R E I G H T B R O K E R A G E P E N E T R AT I O N O F T O TA L F R E I G H T M A R K E T 4% 5% 6% 6% 7% 8% 9% 9% 10% 8% 10% 13% 12% 11% 19% 16% 15% 15% Source: Armstrong & Associates 6

7 SIZE AND SCALE MATTER L A R G E S T N O R T H A M E R I C A F R E I G H T B R O K E R S B Y E S T I M AT E D N E T R E V E N U E S 2018 (IN BILLIONS) $1,525 $521 $395 $339 $330 $305 $300 $180 $164 $151 Source: Transport Topics 7

8 DIVERSIFIED PORTFOLIO OF CUSTOMERS CUSTOMER SIZE SEGMENTATION GLOBAL CUSTOMER COUNT 0.6% % OF NET REVENUES 26.2% LARGE 2.2% 23.7% 124K+ MEDIUM 5.9% 18.9% C U S T O M E R S A C R O S S T H E G L O B E SMALL 91.3% 31.2% 48% O F N E T R E V E N U E S T O P C U S T O M E R S 100% R E T E N T I O N I N % Y E A R S W I T H C. H. R O B I N S O N % of 2018 net revenues 8

9 A GLOBAL, DIVERSE CARRIER BASE AGGREGATING A FRAGMENTED MARKET 9% MEDIUM CARRIERS TRUCKS 83% SMALL CARRIERS <100 TRUCKS 8% LARGE CARRIERS >400 TRUCKS PERCENTAGE OF 2018 TRUCKLOAD SHIPMENTS BY CARRIER SIZE 76K ACTIVE CARRIERS AND SUPPLIERS IN 2018 CAPACITY RELATIONSHIPS WITH OVER 100 LTL CARRIERS EXTENSIVE INTERMODAL COVERAGE WITH DIRECT ACCESS TO ALL CLASS 1 NORTH AMERICAN RAILROADS TOP 5 NVOCC WITHIN THE GLOBAL OCEAN CARRIER PORTFOLIO 20 CORE AIR CARRIERS MOVE 73% OF OUR VOLUME 9

10 VOLUME GROWTH OVER TIME N O R T H A M E R I C A V O L U M E G R O W T H C A G R G L O B A L V O L U M E G R O W T H C A G R +4% T R U C K L O A D +13% L T L +10% O C E A N +15% A I R 10

11 Y O Y % C H A N G E I N C O S T A N D P R I C E MAINTAIN MARGIN THROUGH THE FREIGHT CYCLE N O R T H A M E R I C A T R U C K L O A D P R I C E A N D C O S T Y O Y % C H A N G E ( 1 ), T R A N S P O R TAT I O N N E T R E V E N U E M A R G I N 25% 20% 15% 10% 5% 0% (5%) (10%) AVERAGE: 17.1% (15%) % 21% 19% 17% 15% 13% 11% T R A N S P O R T A T I O N N E T R E V E N U E M A R G I N YoY Price Change YoY Cost Change Trans Net Revenue Margin Average Trans Net Revenue Margin (1) YoY change in cost and price exclude the estimated impact of fuel. 11

12 MAINTAIN MARGIN THROUGH THE FREIGHT CYCLE N O R T H A M E R I C A T R U C K L O A D P R I C E A N D C O S T P E R M I L E ( 1 ) PRICE PER MILE COST PER MILE (1) Cost and price per mile exclude the estimated impact of fuel. 12

13 AIR TRUCKLOAD O U R G L O B A L M U LT I M O D A L P L AT F O R M INTERMODAL DIGITAL & TRADITIONAL OCEAN CONNECTS 200K CUSTOMERS AND CARRIERS, DELIVERING REAL TIME INSIGHTS AND VISIBILITY 124K C U S T O M E R S LTL SOURCING DIGITAL & TRADITIONAL MANAGED SERVICES 76K C A R R I E R S CUSTOMS 13

14 M E E T I N G O U R C U S T O M E R S & C A R R I E R S W H E R E T H E Y W A N T T O B U Y MOST CONNECTED, EASIEST TO ACCESS: USE OUR PLATFORM OR CONNECT VIA OTHERS 75% O F S H I P M E N T S A R E T E N D E R E D T O U S E L E C T R O N I C A L L Y VISIBILITY PLATFORMS TELEMATICS PROVIDERS PROPRIETARY TMS ERP 50% O F S H I P M E N T S P O W E R E D B Y N A V I S P H E R E A R E F U L L Y A U T O M A T E D AGGREGATORS 650M D I G I T A L I N T E R A C T I O N S A N N U A L L Y 14

15 O U R I N F O R M AT I O N A D VA N TA G E C R E AT E S B E T T E R O U T C O M E S EXPERIENCE 115 years of accelerating commerce Multimodal Across all industries Across all customer segments + SCALE 124K customers, 76K carriers 650M digital interactions annually 18M shipments annually 1.5M quote requests per day D E L I V E R S A N INFORMATION ADVANTAGE Creating better outcomes for customers, carriers, and employees 15

16 O U R R E S U LT S N E T R E V E N U E S 7. 0 % 10- Y E A R C A G R (IN MILLIONS) $2,800 $2,600 $2,400 $2,200 $2,000 $1,800 $1,600 $1,400 $z1,200 $1,000 $2, D I L U T E D E P S F R O M C O N T I N U I N G O P E R AT I O N S (1) 8. 6 % 10- Y E A R C A G R $5.00 $4.50 $4.00 $3.50 $3.00 $2.50 $2.00 $1.50 $ H A S R E T U R N E D O V E R $5 BILLION T O S H A R E H O L D E R S I N T H E L A S T 1 0 Y E A R S (2) D I V I D E N D P E R S H A R E 7.6% 10- Y E A R C A G R (1) Adjusted results excluding Non-Recurring Transaction Impacts related to the acquisition of Phoenix International Freight Services LTD. and Apreo Logistics S.A. and the divestiture of T-Chek Systems Inc. (2) Includes a $500 million accelerated share repurchase. 16

17 W H AT Y O U S H O U L D E X P E C T Continued focus on taking market share Automation of core processes Improved operating leverage 17